BigBasket Raises $50 Million in the Latest Funding Round

13-aug

E-commerce players would need to continue to dish out new strategies and innovations to enhance their reach across a wider spectrum. 2015-16 will witness a lot of investment in E-commerce, one of the most high impact Indian sectors.

Bangalore based e-Grocer BigBasket has raised US$50 million in the latest round of funding. According to the recent news, the e-Grocer has raised a close to Rs 315 crore from its present pool of investors in a consortium led by Bessemer Venture Partners. Looking back at the developments that took place a couple of months back, BigBasket had already mandated Citigroup to raise US$150 million from an ‘up to the minute’ pool of investors. The fund-raising process is inclined towards the vision of BigBasket to reach a value of US$1 billion. The Bangalore based e-Grocer is looking to pave their way into more than 50 tier-II cities. Facing a stiff competition from Amazon supported Kirana Now, BigBasket has been largely termed as one of the largest e-Grocers in India with an existing valuation of more than US$400 million. With so many big e-Commerce players looking to enter the online grocery space, this development would be healthy news for the Bangalore based e-Grocer to stay ahead of its competitors. It was reported on various online portals that Flipkart is also currently testing their online e-Commerce grocery platform called fQck. The idea of focusing on the smaller cities can prove to be very beneficial for BigBasket. It can also be seen that the Bangalore based e-Grocer has fastened their seatbelts in terms of placing them at the pinnacle of express delivery categorizing. India’s e-Commerce market is pegged to multiply 15 times to reach the US$30 billion mark by 2030, according to a recent Goldman Sachs report.

BigBasket was founded in the year 2011, backed by the K Ganesh’s Growthstory initiative. The list of investors behind BigBasket includes Ascent Capital, Zodius Capital & Helion Venture Partners. BigBasket has already rolled out their operation plans in Kolkata and Ahmedabad. This recent injection of funding will help BigBasket foray aggressively across next 50 cities with Mysore being the initial one. Speaking about the development, Hari Menon, CEO, BigBasket commented, “Our revenue run rate projection for the next financial year, FY17, is $1 billion.” With grocery set to be one of the most transacted e-commerce sections in the coming years, the progress of BigBasket will be one to watch out for.

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